Of course I have great confidence in our community builders, the home builders who build the homes for the families and the individuals and the seniors—not one size fits all. But to the member’s point, our plan in this proposed bill is to reduce the cost of development so that higher costs are not passed on to consumers, and also to reduce delay. We can reduce delay by up to 18 months just by eliminating the Planning Act third-party appeals.

What happens, to the member’s point, unfortunately, is that the third-party leverage associated with these appeals can make demands for modest but unnecessary changes, such as reduced height, footprint and setbacks, in exchange for not filing an appeal. We happen to believe that that kind of blackmail, so to speak, that procedural bureaucracy associated with the appeal process, is unnecessary. Some 67,000 housing units were tied up with that. We want to eliminate that.

It is about getting out of the way. When this government was first formed in the 42nd Parliament in 2018, there were so many obstacles in the way of growth and prosperity.

Again, as we’ve said many times in this House on behalf of this government, it’s not that this government creates jobs, it’s not that this government manages things directly, but it creates the conditions for prosperity. It creates the conditions for job creation and well-paying jobs.

So what we’ve done is, over the past several years, with a series of red tape reduction bills, including this proposal now—but even without this proposal—we have reduced the burden of red tape and saved Ontario businesses and the broader public sector over $958 million in gross annualized compliance costs. This creates the conditions for success and prosperity and for building the Ontario of tomorrow.

But to this specific question about the building code, the 2024 edition: The proposed next edition of Ontario’s building code would become 12% more harmonized with the national construction code. Our government harmonizing the building code will help build more homes by helping to standardize supply chains across the country, especially for modular home building. The new building code will reduce red tape by over 1,730 provisions; that’s good news for the future and for building Ontario.

Speaker, the way it is done is, first of all, by listening—by listening to the people who sent us here; by listening to all the people and especially the small business owners. What they’ve told us time and again is that government is large enough and there are many unintended consequences of big government. That is this reality of red tape, regulation, high fees.

And so, a previous PC government had a red tape commission. We’ve taken the next step: A full ministry is devoted to red tape and regulation reduction. That is a track record of our government in this 43rd Parliament. This is one of a series of red tape reduction and regulation reduction initiatives—it’s one in a series.

The conversations began in 2018. They continued through the last Parliament. They’re continuing in this Parliament. We’re going to keep going with these conversations and get it right and create the conditions for success and for growth.

I am very pleased to rise in this assembly this afternoon to speak to our bill, the Better for Consumers, Better for Businesses Act. This is our proposed new Consumer Protection Act, an act that is vital to the people of Ontario and to our economy. This bill also contains our proposed amendments to the Consumer Reporting Act.

Mr. Speaker, our government has an obligation to Ontario consumers. In fact, we are all consumers in our province and our government must ensure that there are safeguards against unfair business practices. These include, among other things, aggressive sales tactics and misleading claims.

At a time when many families are struggling just to pay for household essentials and looking to make every dollar count, our government must stand up for them and make sure they do not face unnecessary hardships. If passed, this legislation would enhance protections for consumers in the marketplace, strengthening their rights and their confidence, while making it easier for businesses to comply with consumer protection rules. Our proposed changes to the Consumer Reporting Act would improve and clarify that act for businesses and for consumers, while at the same time helping Ontarians monitor, protect and access their information and their credit scores.

A look back at historical context is appropriate at this time, I suggest, Mr. Speaker. How did we get to this point in consumer protection history?

Going back many decades, the idea of consumer protection was a subject of federal initiatives both here in Canada and in the United States. Back in 1962, President John Kennedy spoke of a consumer bill of rights. And in 1967, our federal Canadian government created the first federal Department of Consumer and Corporate Affairs, but the province of Ontario was already well ahead of the federal government at that point. This is because, of course, in the original BNA Act of 1867, the Constitution Act of 1867, the exclusive jurisdiction over property and civil rights fell to the provinces.

So Ontario was the leading province, I submit, under then Prime Minister John Robarts—in those days, we called the First Minister of the province the Prime Minister. Under a Robarts Progressive Conservative government almost 60 years ago, the journey of this act began. That is when this assembly passed the Consumer Protection Act of 1966. That consumer-protection legislation was initially focused on door-to-door sales, consumer credit and repossession. Other legislation passed by the provinces included provisions providing for relief from unconscionable transactions and restricting certain business practices.

The current Consumer Protection Act that we propose to replace by this new modernized consumer protection act was introduced through the Consumer Protection Statute Law Amendment Act, 2002. The minister of a Progressive Conservative government at that time was Tim Hudak, who the Speaker acknowledged today and is present in the assembly. That act was designed to modernize and harmonize consumer protection laws to better serve and safeguard Ontarians. It was a major consolidation of six pieces of legislation that were developed between 1966 and 1994: the Business Practices Act of 1974, the Consumer Protection Act of 1966, the Consumer Protection Bureau Act of 1966, the Loan Brokers Act of 1994, the Motor Vehicle Repair Act of 1988, and the Prepaid Services Act of the same year, 1988.

Both of these game-changing statutes for the protection of Ontarians were drafted and introduced by Progressive Conservative governments, I am proud to report, and our Better for Consumers, Better for Businesses Act, 2023, is a continuation of this great Progressive Conservative legacy. This is a legacy of putting Ontarians’ well-being at the forefront and making sure that our fellow citizens have all of the protections needed as they navigate the marketplace—an increasingly digitalized marketplace—and online world.

We need look no further than the preamble to this proposed bill as we look to determine what the purpose of this and consumer protection legislation is really all about. The preamble is worth reading, I say to all members of the House. The preamble contains these four pillars:

“Consumers should have confidence that they are well-protected and well-informed when they buy goods or services in the marketplace.

“The economy thrives when businesses understand their responsibilities and consumers can trust businesses when spending their hard-earned money.

“The government of Ontario is dedicated to informing consumers, empowering them with a greater understanding of their rights and protecting consumers from unfair business practices, while holding non-compliant businesses accountable.

“The government of Ontario is committed to supporting a level playing field for businesses in order to promote fairness in the marketplace.”

I submit that that preamble is represented in all of the 121 sections of the proposed bill. I might add, in terms of historic context, that times have changed; the marketplace is more complex. We need consumer protection more than any other time. But by contrast, Bill 142 is much lengthier in terms of sections. It contains 12 parts making up those 121 sections. The original 1966 act was 35 sections and four parts. We have come a long way, but life and consumer protection needs are more complex in the modern world of 2023.

My ministry, the Ministry of Public and Business Service Delivery, plays an important role in fulfilling our government’s duty to consumers. As Ontarians make significant purchasing choices, we are here to enforce consumer protection legislation and safeguard our fellow citizens from bad actors. Ontarians must feel confident that their government has their backs regardless of when, where or how they enter contracts. Whether they are signing a contract for home renovations, an installation of a major home appliance, the purchase of a time-share, or the purchase of subscriptions and memberships, we must provide modern legislation that addresses consumer protection now in 2023.

Ontario currently has at its disposal the Consumer Protection Act of 2002, which aims to guard the rights of consumers while fostering a healthy and competitive economy. It is the primary legislation that defines rules for consumer protection in Ontario—a key piece of Ontario’s consumer protection framework that applies to most transactions between consumers and businesses. The current act does help protect consumers from harm when they purchase goods and services in the marketplace for personal, family or household purposes, whether shopping in person or online, and this is particularly important in our increasingly online world where consumer habits and business practices are focused on digital service delivery more than ever. Our new proposals would, if passed, help better protect consumers against unfair business practices, and this means building upon what can be done when a business engages in those unfair business practices.

Madam Speaker, as you may know, the current act has not been comprehensively updated since it came into force in 2005. While we call it the current legislation—the Consumer Protection Act, 2002—it actually was not proclaimed for three years after its passage in this House under a PC government. As it stands, the act is quite complex currently, because after a series of amendments over the past two decades, it is not readily understandable for consumers and is often complicated for businesses to comply with. In today’s increasingly digital and service-oriented economy, it simply does not reflect the current reality. So much has changed in just two short decades, as we now are in the early years of the third decade of the 21st century. That is why we must change with the times. After all, Ontario’s marketplace has evolved significantly in this century alone. Consumer protections need to reflect today’s reality of an online world as more of us are shopping online, banking online and relying on technology more than ever.

Over the years, our government has received an increasing number of complaints from the public and stakeholders about harmful, misleading and costly business practices. It has also been brought to our attention that there are real and perceived gaps in enforcement. The people of Ontario have stated loudly and clearly that they want action to ensure their rights as consumers are protected. We know these issues disproportionately affect new Canadians, seniors and other vulnerable consumers, while also undermining a fair and competitive economy.

To address these deficiencies, our government introduced the Rebuilding Consumer Confidence Act in 2019, accompanied by the announcement of a broader strategy to rebuild Ontarians’ confidence in the marketplace. As an important part of this strategy, my ministry began a comprehensive review of the existing Consumer Protection Act. We examined how to update the act to strengthen protection for consumers, adapt to changing technology and marketplace innovations, and to streamline and clarify requirements to improve consumer and business understanding and compliance. The proposed new Consumer Protection Act reflects the culmination of years of work, including extensive consultations with the public and stakeholders over a three-year period. And I give credit to the deputy minister, who is present in the House today to view the beginning of the debate on this bill, for her excellent leadership in getting us to this point.

Amongst a vast stakeholder group, including consumers, consumer associations, legal and advocacy organizations, businesses and law enforcement officials, we have received many expressions of support for our suite of proposed reforms—these include Graham Webb from the Advocacy Centre for the Elderly. Mr. Webb spoke strongly in favour of the measures that we propose to help vulnerable seniors, who are often exploited and taken advantage of in this changing and complex consumer world.

Over the past few years, governments in Canada and globally have been amending or reviewing consumer protection and competition legislation to respond to the changing needs of consumers and businesses. Our new legislation, if passed, would help us better align Ontario’s regime with other Canadian jurisdictions and make Ontario a leader in Canada in consumer protection, including in the digital economy. That leadership role has been played by the province of Ontario, by leading in consumer protection from the beginning, almost 60 years ago.

In terms of the main elements—further to my outline of what the bill is about in the preamble—I’d like to provide an overview of some of the main elements within our proposed Better for Consumers, Better for Businesses Act, 2023.

First, it would build on existing protections to strengthen consumer rights and to better protect and empower each of us—because, as I’ve indicated, we are all consumers.

Second, streamlining and clarifying requirements: That makes it easier for businesses to understand and comply with the law. I know first-hand that the vast majority of our businesses, large and small, do comply with the law, want to comply with the law, but don’t need more burden of red tape and regulations. This is why we call the act, appropriately so, the Better for Consumers, Better for Businesses Act—because there are two sides to the story, and there are only, relatively speaking, a very few non-compliant, unscrupulous businesses. They will not be able to get away with what they have been getting away with, especially when it comes to protecting our seniors and new Canadians—those with language challenges—and vulnerable Ontarians.

Thirdly, the bill, if passed, would introduce new enforcement powers to better enable my ministry to hold those few bad actors accountable and to support consumers in the meantime.

Now I would like to address each of these elements in greater depth and outline some of the measures that we are exploring as part of the proposed legislation.

To better protect consumers, this legislation, if passed, would strengthen consumer rights by updating contract rules to adapt to changing technology and innovations in the marketplace. Through the development of carefully considered regulations, we would seek to address consumer concerns and consumer harms by reducing barriers to consumer choice and advancing sector-specific protection measures, including unilateral contract amendments made by businesses, as well as automatic renewals and extensions and subscription traps. These practices must be curtailed—punitive exit options from time-shares and long-term leases of home-related equipment; high termination costs for purchase-cost-plus leases if a consumer wishes to end a contract early; and unfair practices such as aggressive sales tactics and misleading claims.

In order to better protect consumers, these proposed changes would also modernize contract rules. We know that the vast majority of businesses do aim to treat their customers fairly and honestly, as I have indicated. However, there are some businesses that can cause tremendous damage and harm to our fellow citizens, and they may provide contract information in ways that make it difficult to understand. Under the proposed changes, a single set of core rules would govern consumer contracts, regardless of the type of contract, the sector and how the business operates, whether online, by phone or in person. My ministry will explore whether some contracts may need additional rules, for example, in the case of some big-ticket items for purchase. This means businesses would also be required to disclose the key terms of a contract, with a fair and accurate description of the goods and services that would be supplied and an itemized list of prices. These rules would apply to most consumer contracts, including home renovation contracts, contracts for the installation of home appliances, time-shares, personal development services and gym memberships, loan brokering, credit repair services, and certain lease agreements.

And as we quickly approach another holiday season, we know the topic of gift cards may come to mind for those looking to make purchases or redemptions. With the expanded gift card market in recent years, it has now grown to include a variety of prepaid purchase contract and services. Therefore, it has become increasingly important to ensure those who buy and use these prepaid purchase cards are protected. As such, our government is proposing to transfer the current regulatory prohibition that gift cards cannot expire to this new act, to ensure prominence. Regardless of how gift cards are purchased—in store, online or via an app—we would make sure both buyers and sellers are aware that gift cards cannot expire. Now, under the current act, gift card provisions are set out in regulation. To ensure it’s clear to all Ontarians and businesses that these gift cards cannot expire, we are proposing to enshrine this rule within our new proposed act.

As my ministry outlines the developments toward providing details on the many proposals in this legislation to be implemented in regulations under the act, we will be continuing our ongoing work with our stakeholders and the general public. We will want to know how rules can be enhanced and work better for all residents of Ontario.

The current Consumer Protection Act allows businesses to amend, renew or extend most contracts by simply providing a notice to a consumer, and it permits price-escalation clauses where charges paid by consumers can increase during the contract. However, our proposed new rules would make consumer consent and choice paramount—stronger than ever. Specifically, the new act would limit when businesses can make unilateral contract amendments and conduct renewals and extensions. Businesses could only do so if permitted by the act or regulations. More than before, businesses would need to obtain clear consent from their customers for contract amendments, renewals and extensions.

Once implemented, these proposed changes would also require that automatic renewals or extensions of contracts, where permitted, include an ongoing and important right for the consumer: the right to exit and put their hard-earned dollars to work elsewhere for new services or goods. Consumers should never feel trapped. It is vitally important that Ontarians can make informed choices when we buy goods and services. We believe they have a right to understand these contracts up front so they can make the appropriate decisions to suit their needs and their budgets. By reducing costs to consumers when they terminate contracts and potentially change suppliers, we would also support competition and consumer choice in this regard.

Once passed and implemented, these proposed changes also would make it easier for consumers to cancel subscriptions and memberships when they no longer want to use them. Businesses should be encouraged to continue innovating and delivering value year over year to retain their consumers—not forcing them to be stuck in contracts that consumers no longer wish to be part of.

We often see a few salespeople make false claims of government oversight or authorization and sometimes bogus prize offers. The proposed changes under this bill would, if passed, specifically prohibit such business behaviour as an unfair practice.

The proposed changes would also clearly prohibit price gouging and other means of taking advantage of consumers. If a business engaged in an unfair practice, the new act, if passed, would give consumers the right to rescind a contract for one year after entering the contract, or one year after the unfair practice takes place, whichever is later. Furthermore, we are strengthening consumer rights against businesses that do not provide refunds when the Consumer Protection Act requires it.

Under the current legislation, when a consumer is entitled to a refund, the business must issue that refund within 15 days of a consumer giving notice. However, under our proposed legislation, if a consumer must take legal action to enforce their right to a refund under the Consumer Protection Act and the consumer is ultimately successful in court, they would have the right to recover three times the amount that should have been refunded by the business in the first place. Our government will not stand by and allow these few bad actors to take advantage of hard-working residents of Ontario by way of unfair business practices.

In the region of Durham, and in my riding of Durham, I’ve had the experience of being both a trial lawyer and a deputy judge over 30 years. I was a deputy judge for three terms, from 2002 to 2011, in the context of my overall 30-year career. As a lawyer, I was involved in consumer protection cases that went to court, and I presided over such cases as a deputy judge. What I learned is how important it is for consumers who have been wronged to have speedy justice, to have fair compensation. I’m also aware of how many excellent businesses are operating in Durham and throughout Ontario, who want to serve consumers properly, who want to comply with the law, who don’t want to be burdened with unnecessary red tape and regulation in doing so. There are two sides to the equation, as I indicated. That on-the-ground experience, both as a lawyer representing both sides of consumer protection disputes and presiding over the adjudication of those disputes as a deputy judge, gave me insight as to how important it is to modernize consumer protection rules and the core values around consumer protection in this modern, digital, online world.

I want to take a moment to talk specifically about the proposed legislation in regard to time-shares. You may have heard about consumers who have entered into a time-share contract that finds themselves and their families locked in indefinitely. This can cause real concern if an owner’s travel or financial situation changes. This could make the continued cost of a time-share less affordable or even unaffordable, or in the event that an original consumer passes away, it leaves the time-share contract to their children to deal with.

The current Consumer Protection Act includes requirements for time-shares. However, it does not address exit options for consumers. Therefore, under our proposed changes, Ontarians would have an exit option at 25 years. This would apply to new and existing time-share agreements and would also provide a similar exit option for others, to be determined in future regulations, upon a time-share owner’s death. In doing so, we would limit the costs that a consumer may be charged in exercising the right to exit.

Some of these time-share contracts go back to the 1980s and 1990s, and there is no exit option under the current legislation. This exit option is very, very important for not only the consumer who entered into it, sometimes decades ago, but also to their heirs and successors who would otherwise be bound in perpetuity with respect to these time-shares. That is not right. That is not fair. We’ve listened to all those involved in regard to these time-share contracts, and we’ve come up with an exit option that we submit is fair for all concerned.

On long-term leases, we know that understanding the true costs of long-term leases, such as for a water heater, including the cost to terminate the lease early, can be particularly challenging for seniors and newcomers to our province. The lack of clarity with respect to these long-term leases can often enable bad actors to take advantage of vulnerable individuals. In Ontario, it is much more common for homeowners, more so than those in other provinces, to lease or rent water heaters, furnaces and other home comfort equipment on a long-term basis. Quite often, they are persuaded to enter into contracts by aggressive salespeople who seek to find a way to sell the products to them at home despite the fact that the Consumer Protection Act already restricts offering or selling certain goods and services like HVAC equipment door to door.

For example, let’s start by imagining it is a hot summer day—and we’ve experienced many of those this past summer. Your air conditioner has just gone out, so you invite a salesperson to discuss options about a new air conditioning unit, and they offer a quick solution. Upon entering into a 10-year lease for an air conditioner on the assumption that you could buy it out later if you no longer want to lease the product, you find yourself in a different position than you assumed. Some time later, you decide to look at the relative costs of purchasing, leasing and financing the equipment. Following that, you decide you would like to exit the rental deal. However, when you attempt to buy out the air conditioner, you are informed by the company that you will need to pay all the remaining payments of the lease agreement, even though that amount is five times the value of the fixture.

Our proposed changes under the new act would, if passed, establish specific rules for a new category of long-term contracts, primarily those types of contracts for long-term leases of heating, ventilation and air conditioning known as HVAC, along with other home comfort appliances. To provide Ontarians more clarity and consumer choice, businesses would need to provide them with a buyout schedule where the cost to buy out the contract and obtain ownership of the equipment would decline over time to zero, and this schedule would be clearly and prominently disclosed as part of the initial leasing contract. Additionally, by establishing and reaffirming a 10-day cooling off period and setting limits on termination costs for purchase cost plus leases, Ontarians will have increased protections and options should they decide to end a contract early.

We have received many examples through complaints filed with Consumer Protection Ontario, the ministry and across many MPPs’ offices on both sides of the House, and we hear constantly of the need for protection, particularly in the HVAC industry, where these abuses from a few bad actors are occurring. Businesses—in particular, small businesses—would benefit from clearer, simpler contract requirements that reflect our dynamic and increasingly digital-first marketplace. Combining contract disclosure rules into a single set of core rules would apply to most contracts and, in some cases, reduce the burden on those businesses that enter into contracts with consumers through multiple channels. That is what I mean, again, by the fact that there are two sides of this equation—better for consumers, better for businesses. That’s the name of the act, appropriately so.

We must ensure that our laws support a fair and competitive economy while striking a balance between strengthened consumer protections that help enhance consumer confidence and reduce burdens and costs for businesses. Reducing red tape is a key part of building a stronger economy and improving services for Ontarians. That is why our government is continuing to bring forward additional burden reduction packages that are saving businesses nearly $700 million each year in compliance costs, and our government is on track to the $1 billion figure in annual savings. Part of that is our strong track record of improving access to critical government services and making it easier to invest and build in Ontario. My ministry continues to update regulations that can often hold us back, and we are taking action to enable people to thrive and businesses to prosper.

Ontario is Canada’s economic engine, and despite global economic uncertainty, our government remains laser-focused on building a strong and resilient economy—one in which there are well-paying jobs for people across the province, and one that strengthens communities and sets a strong foundation for our shared future.

As I believe you may know, Speaker, our government regularly meets with governments in other jurisdictions. This enables us to recognize how to best strengthen our economic ties and reinforce our province’s strengths across all sectors, while allowing us the opportunity to showcase Ontario’s advantages, as many international businesses continue their expansion plans and look to Ontario as an opportunity for prosperity.

During a time of uncertainty, our government continues to create the conditions to attract new businesses and investments. It’s worth repeating at this point that a government like ours—and no government can do this—is not here to control the economy or to direct the economy but to create conditions that allow for prosperity, for innovation, for job creation. That is how a government like our Ontario Progressive Conservative government creates economic prosperity for all.

Stronger enforcement powers against those few bad actors who are out there is an important feature of this proposed legislation. Our proposed changes would strengthen enforcement powers to help our government target unethical business practices without adding regulatory burden on most of the compliant, excellent business enterprises, large and small, that serve the public and provide value in goods and services to consumers.

If passed, the Better for Consumers, Better for Businesses Act, 2023, would better protect consumers by allowing my ministry to have stronger enforcement powers against the few bad actors.

Members of this House have heard of cases where businesses use an intermediary, such as an online platform or a building service, which effectively supports the business’s contravention of the act. A single mother, for example, might be persuaded to enter a contract for heating, air conditioning and furnace services by an aggressive salesperson who misrepresents the true cost of the contract and the savings that she will apparently achieve. The consumer relies on the Consumer Protection Act to rescind the contract because of the business’s unfair practices, but the business continues to collect monthly payments through a third-party billing service. Under the current Consumer Protection Act, the ministry can issue compliance orders only against those people who are directly contravening the act, not the intermediaries. That’s a weakness with the current legislation, which was not anticipated when it was first passed by this House two decades ago. As a result, the ministry cannot issue a compliance order under the current legislation against the billing agency. It cannot direct it to stop collecting payments on behalf of the non-compliant business. Therefore, our proposed changes would extend enforcement powers to cover the actions of the intermediaries, like the billing agency, that assist a business in contravening the act.

Further proposed changes, if passed, would assist the ministry in those cases where a third party might be willing to co-operate with the ministry in its efforts to address contraventions of the act by another business but are hesitant to provide information voluntarily, without a court order.

Under the current act, the ministry would have to apply to the court for a search warrant. The execution of a search warrant by the ministry can be a highly disruptive process for the third party. Therefore, our proposed changes would authorize a justice of the peace to issue a production order upon application by an investigator under the director. This would enable the collection of relevant evidence. A production order puts greater control of the collection and release of information in the hands of the third party and is much less disruptive to the third party’s operations.

The new act would also allow for the sharing of information obtained over the course of exercising a power or carrying out a duty related to the administration of the Consumer Protection Act with other government regulatory entities, whether they are involved in consumer protection or not. In the event of a contract term that attempts to forbid a consumer from filing a complaint with the ministry or otherwise communicating with the ministry, consumers would have alternate options for recourse. Our proposed changes would clarify that businesses would not be able to include terms in a contract that mislead consumers about their right to have disputes adjudicated in an Ontario court.

We’ve also heard of cases where some businesses may try to control negative consumer comments and bill people whose comments they consider to be damaging or disparaging. Under the proposed changes in this bill, if they are passed and implemented, it would support the free exchange of information in the marketplace by prohibiting businesses from including terms in a contract that try to deter them from publishing reviews or that bill consumers in response to the content of these reviews. Our government believes that Ontario’s citizens should be able to share their experiences with a business without fear of repercussions, as the free flow of information between consumers is vital to encouraging businesses to compete on value and to improve competition.

Speaker, I want to reiterate that these stronger enforcement measures are not intended to add any additional costs or burdens to business, because we know that the vast majority of businesses, as I have said, are compliant and, quite frankly, provide excellent service to consumers. They want their good reputation to be shared with other customers and other consumers.

So in keeping with the principles of a modern regulator, my ministry takes an evidence-based and proportionate response to business non-compliance that focuses on addressing consumer harm. Before using its strongest enforcement tools, my ministry would need to be satisfied that there are reasonable and probable grounds to believe an offence under the proposed new act has been committed, and that the public interest demands certain action be taken. Along with the proposed new Consumer Protection Act, our government remains committed to strengthening consumer protection, and we will continue to look at even more ways to protect consumers.

Speaker, the act contains two schedules, the first schedule being what I’ve outlined already, the Better for Consumers, Better for Businesses Act. The second schedule addresses the Consumer Reporting Act. This proposed legislation would make amendments to the Consumer Reporting Act, the legislation that sets out what can and cannot be included in a credit report. The Consumer Reporting Act governs consumer reporting agencies, also known as credit bureaus or agencies. These agencies provide information about consumers’ credit histories, such as their borrowing and bill-paying habits. These reports are provided to third parties that include creditors, insurers, employers and landlords.

There are currently 29 such agencies registered under the Consumer Reporting Act. Equifax and TransUnion are two of the largest. They are used by most consumers and third parties to access consumer information. Many other agencies are smaller and focused on specific data types.

The Consumer Reporting Act requires that agencies ensure the accuracy of their consumer reports. These requirements not only protect the consumer, but also third parties such as banks, lenders, landlords and employers, all of whom rely on the information that these agencies maintain. To that end, the act requires agencies to be registered and governs what an agency can report, how a report can be used, when a report can be requested and what a consumer can do if their file is inaccurate or incomplete.

In recent years, you may have seen a heightened focus on credit reporting, especially since 2017, when the Equifax data breach compromised the records of 154 million data subjects worldwide, including 19,000 Canadians. In 2019, a TransUnion breach compromised the information of 37,000 Canadians.

Amendments to the Consumer Reporting Act were passed in 2018 but have not yet been proclaimed into force. Those amendments made changes related to consumer access to consumer reports and scores, security freezes and ministry enforcement powers. The changes we are now proposing to the Consumer Reporting Act would, if passed, improve and clarify the act. Consumer reporting agencies would be able to effectively implement amended and improved versions of the 2018 provisions. Consumers would have greater access to their credit information and a greater ability to limit how their credit information is shared through security freezes.

Clarke Cross, the CEO of TransUnion, one of the largest agencies, applauds our proposed efforts in this regard to make these changes.

When agencies contravene the act and its regulations, consumers would be able seek recourse and be provided with additional tools to correct and protect their information, especially against the dangers of identity theft. We know many Ontarians share similar concerns related to identity theft, and under the proposed amendments, having the ability to place a freeze on their credit report for a certain purpose could prevent creditors or lenders from accessing those reports. In the case of a stolen identity, this would impact a creditor’s decision on whether to extend credit to a person who is fraudulently trying to do so.

Additionally, under these changes, Ontarians would be enabled to receive free electronic access to their consumer reports and credit scores once per month. That’s free access without compromising their credit score, because we know that the more a history is accessed the more that could affect a consumer’s credit score. That would not occur with these proposed changes. The consumer can have access to credit scores and reports once each month instead of the previously unproclaimed requirement of free electronic access twice per year. They may also find having the statutory right to place an explanatory statement on their consumer file to contextualize their information, such as in the circumstances of loans, to be a useful tool at their disposal. This is important, because the ability to access credit is important for consumers, whether being involved in a home renovation or a smaller purchase. In short, enhanced compliance and enforcement tools would enable the ministry to enforce the law more effectively.

And that is not all. My ministry is also working to address an area of significant concern for consumer harm related to notices of security interest. We addressed this in section 60 of the proposed Consumer Protection Act, but before I go further, I would like to provide a brief overview of the issue we are facing for those who are not familiar with NOSIs, or notices of security interest.

A NOSI is a notice that may be registered on the land registry system by a business when it rents, finances or leases certain equipment that is installed in a home. This would include such fixtures as water heaters and furnaces. These are often mistaken as a lien. These are notices that may be registered when a business or consumer has signed a contract that gives rise to a security interest in the equipment; it is not an interest in land. A NOSI allows a legitimate business to protect its interests and repossess its equipment in the event of a homeowner default on a payment in certain circumstances. However, let me be clear: It does not—and I repeat this, it does not—give the lenders or lessor an interest in or claim against the land itself.

NOSIs do serve a legitimate purpose. However, it is clear that because of just a few bad actors, once again, we are seeing NOSIs used to exploit homeowners for their own financial gain. In the past decade, the use of notices of security interest for fixtures on residential property has increased exponentially, with businesses sometimes inappropriately using them to discourage consumers from changing suppliers and as leverage to obtain contract payouts for consumers that exceed the value of the fixtures. You may have heard some businesses would register a NOSI for an amount that is very high, sometimes not even reflecting anywhere near the actual balance owed by the consumer. They convince a homeowner that they need to pay this grossly inflated amount to have the NOSI discharged from title and the contract cancelled.

We have learned that this is an escalating problem. You may have read recent media reports about how vulnerable consumers are being targeted by bad actors who misuse NOSIs; they even come to their door to do so, to misrepresent themselves. So there has been a sharp increase in the number of consumers adversely affected by having a NOSI on title, the effect of which usually arises when they are trying to sell their home or access additional financing. In 2022, there were 38,475 NOSIs registered in the land registry system, with more than 450,000 in total registered since 2000. To demonstrate how that contrasts with when the current Consumer Protection Act was passed by this House in 2002, in that year there were only 450 NOSIs registered.

The land registry system, unfortunately, is not able to distinguish between those that have been used for legitimate purposes and those registered by the unscrupulous. My ministry is therefore taking an important first step in addressing this issue. We are looking at possible solutions to address the harms being caused by the misuse of NOSIs. We’ve heard loudly and clearly that many homeowners are unaware that a NOSI has been registered on title to their property. In some cases, properties have been owned for decades by an individual or a couple, and as the equity in the home has increased dramatically and the mortgage was long ago paid off, they discover the existence of the NOSI when they go to sell the home.

It has been brought to our attention that a significant number of businesses in the home appliance sector are inappropriately using NOSIs to exploit homeowners for their own financial gain. Nick Perreten of Enercare, one of the good actors who would use NOSIs for a legitimate purpose, has spoken out loudly and clearly in favour of our initiative. This includes the current consultation paper and consultation period that, in conjunction with tabling this bill that includes section 60 and taking a first step at addressing the abuse of notices of security interest, includes a 45-day consultation period which began just under two weeks ago and will conclude on December 1. Parallel to this bill, we are looking at taking specific action that can address the specific abuse of NOSIs even before this act is proclaimed in force, if it is passed by this House. So we are moving swiftly, above and beyond what is contained in this act, to address the specific abuse by a few bad actors in relation to notices of security interest.

Additionally, I want to take this opportunity to thank the member of provincial Parliament for Kitchener–Conestoga, who has been working closely with the Waterloo Regional Police Service. He did so and, as a result, has raised awareness of widespread fraud and abuse of the NOSI system.

As well, the member of provincial Parliament for Markham–Unionville brought forward a motion in this House asking my ministry and our government to further investigate this issue, and that has occurred, with this consultation period.

So I thank those members for their raising-awareness campaign. We are taking action. We are listening.

This business practice of registering a NOSI through the land registry office is meant to signal a business’s interest in the fixture. While that may be legitimate for a company like Enercare, a homeowner should never be put in an unfair position as a result. We simply should not and cannot allow any more Ontarians to fall victim to the misuse of NOSIs.

There is also evidence that financial crimes are increasing as unscrupulous participants in the marketplace intentionally misconstrue the NOSI and its effect to pressure vulnerable Ontarians into high-interest short-term mortgages with less-than-reputable lenders, to pay out the NOSI and extract more money through mortgages. That’s particularly dangerous because, as you may know, a mortgage is a registered interest in land, unlike a NOSI. So this is a hideous practice that particularly harms senior citizens in our province.

There have been cases where homeowners have lost their homes entirely because of mortgage defaults, or they’ve made a large cash payment because of NOSIs that were leveraged inappropriately by the unscrupulous.

Since posting my ministry’s consultation paper on Ontario’s Regulatory Registry last week, we hope that businesses and consumers across the province will continue to share their input and views with us. The consultation period is designed to create an opportunity for businesses and consumers across the province to participate, but also to be concluded by December 1 of this year, so that we can take swift action to address it above and beyond and in parallel to this bill which is before the House.

We are most interested in hearing stories from consumers about NOSIs registered on the title to their property, and we are seeking input from everyone about how we could address the misuse of these otherwise legitimate tools—but used illegitimately by a few.

This consultation will gather feedback from stakeholders, including businesses, law enforcement and legal experts, on the current challenges and opportunities related to NOSIs. We are looking to identify potential immediate solutions that could enhance consumer protection while promoting a fair and competitive economy. My ministry has been in touch with the vast stakeholder group, including advocacy groups and police services, that have previously expressed concern over the misuse of NOSIs. We can’t forget the recent coverage in the media either. This is a very serious matter that affects all homeowners in the province, but particularly vulnerable consumers, including seniors and new Ontarians. My ministry, additionally, continues to monitor this issue and the correspondence we receive as we find new ways to tackle this troubling issue.

This is why we have taken this important step to explore better ways to address these concerns presently and rapidly. After reviewing all the feedback to be received, we will consider any new approaches to address the harmful use of notices of security interest and report back early next year on a comprehensive approach. This could include immediate legislative or regulatory changes, operational updates, and any other recommendations that arise from the consultations.

Right now, based on proposals we have publicly consulted on earlier this year, the proposed new act includes provisions that would help clarify business obligations to discharge NOSIs. Keep in mind that even the start that we are making with section 60 of this proposed bill could give rise to compliance orders, which, if not met by the offending bad actor or business, could be met with severe penalties, including full prosecution and even jail time, if a conviction results.

The proposals would also allow our government to better help consumers who are seeking to discharge a notice of security interest that is attached to their property when a business has failed to do so. These options could certainly include an automatic sunset clause, but we will consider all options to put an end to this harmful practice.

Currently, when a consumer disputes the registration of a NOSI, the consumer must apply to the court for an order to discharge the NOSI. The new CPA proposes to provide consumers with an alternative to the existing process in cases where the underlying contract is terminated, cancelled or rescinded, in accordance with the Consumer Protection Act, the CPA.

As we give this issue further debate, we hope that businesses, consumers, law enforcement and legal experts across Ontario will share their input between now and December 1, and offer suggestions on how to stop the abuse and protect Ontario homeowners against the misuse of what is normally a legitimate tool.

Ontario has also been raising awareness about the importance of online safety by joining the international community in recognizing October as Cyber Security Awareness Month. As a global leader in the digital space, Ontario is always working to strengthen our cyber security practices and to protect the data entrusted to us by our people and businesses. As we continue to navigate our digital world, our government must take the lead in protecting Ontarians’ personal information and to help align our province with federal and international jurisdictions. I urge everyone to take full advantage of my ministry’s many online resources to learn more about how to better protect our personal information online and what our government is doing to keep all of us cyber-safe.

This legislation is building on the previous work of my ministry’s mandate to improve consumer protections for all Ontarians. At one time, the law, without consumer protection legislation, relied on an old doctrine called caveat emptor: “the buyer must beware” or “let the buyer beware.” That concept, thankfully, was diminished in common law with a series of court rulings over many decades, but it came to an end beginning in 1966 and continuing through to the present day, with this proposed bill, with Ontario-led consumer protection. “Caveat emptor” in the consumer protection world is dead and gone.

Earlier this year, we added protections for first-time homebuyers. We know home ownership is top of mind for many Ontarians as we continue to face a housing supply crisis across our province. That is why our government continues to work on its plan to get at least 1.5 million homes built by 2031, as well as steps to tackle the crisis in communities across Ontario. Whether it is through one of our delegated administrative authorities under the purview of my ministry or through new legislation such as this bill, we will continue to find ways to enhance consumer protection, particularly for homebuyers.

First-time homebuyers can rest assured that their savings are protected with our new, expanded deposit insurance for first home savings accounts at Ontario credit unions. Additionally, we consulted on a cooling-off period for buyers of new freehold homes and received input on whether it should be mandatory to receive legal advice before signing a purchase agreement for a new home. After all, you need a lawyer—and lawyers aren’t so bad—to actually go through with a transaction and register your deed. Why wouldn’t you want to have a lawyer to review a contract for a new home that, in some cases, might be a seven-figure amount to purchase it—and perhaps $100,000 down? Lawyers are there and can provide independent legal advice at a very, very reasonable cost. It’s a good backup plan for a consumer making what, in many cases, if not all cases, is the most significant purchase of their lives.

These are just some measures that are all part of our government’s broader plan to provide people with the very best in consumer protection to ensure they have the necessary tools when they buy a new home. Our government will do everything we can to reassure hard-working Ontarians that we have their backs and are protecting them when they’re making such a major purchase.

This is all about protecting consumers and making sure they know their rights, while also informing businesses of their obligations and making it easier for the vast majority of these businesses to comply, as the vast majority wish to.

Speaker, a new consumer protection act is needed, and this is a bill that I believe all Ontarians can get behind.

Our government is working for you, as it continues its work to find solutions that make life easier for Ontarians. We must change with the times, and that is why we decided against proposing further amendments to the existing Consumer Protection Act—and replacing it altogether. The changes we are proposing would, if passed, maintain and build on the current law’s intent in consumer protections while targeting significant consumer harms, particularly new consumer harms. These improvements would result in stronger protections and, we believe, a stronger economic climate. At the same time, we must help guide businesses about their responsibilities and obligations to comply.

I call on all parties to support this important bill to promote a safe, fair and informed marketplace.

To the member for Peterborough–Kawartha, if I may—and I do appreciate his very thoughtful remarks, engaging in this debate in a very helpful way.

We know that this government is engaging with industry, Indigenous communities and Indigenous organizations on all the proposed changes. We know that this is an act—if passed, it would be compliant with section 35 of the charter and the Constitution Act, 1982. Based on that, could the member explain what this will do, if passed, for northern and Indigenous communities?

I thank the member for his heartfelt comments on behalf of his riding and community. It’s very important that we listen and learn.

I want to ask, specific to the bill that we are debating, Bill 85, budget 2023: Will he and his colleagues in His Majesty’s official opposition support the increase in the investment in homelessness prevention and the Indigenous Supportive Housing Program, which is proposed to be over $200 million annually, to give more people a safe place to call home?